Lending Rebound Bolstering CMBS Pipeline via CMAlert.com

Commercial MBS issuance is picking up steam.

After a slow first quarter, volume is now on track to reach $20 billion by midyear. That would surpass the $17.1 billion of activity in last year’s first half and put the sector on pace to exceed the $38 billion annual issuance forecast by a panel of bond pros.

Ten more transactions totaling $11.8 billion are expected to price by midyear, according to a review by Commercial Mortgage Alert (see Page 18). Coupled with the $3 billion of transactions that have already priced this month, second-quarter volume would total $14.8 billion — more than double the $6 billion of first-quarter activity.

The pipeline through June 30 contains eight multi-borrower transactions totaling $10.2 billion, a $1.4 billion single-borrower deal and a $200 million distressed-loan securitization. By month, that breaks down to $2.9 billion for the rest of April, $2.9 billion in May and $6 billion in June.

The pickup in activity reflects somewhat better lending conditions for CMBS shops in recent months. What’s more, lenders said borrower inquiries have increased steadily over the past few weeks, raising hopes for a busier second half.

Read more...Lending Rebound Bolstering CMBS Pipeline via CMAlert.com